Danantara and INA to Fund CA-EDC Factory Development by Chandra Asri Group

TEMPO.CO, Jakarta - The Investment Management Agency of Nusantara Daya Anagata (Danantara), the Indonesia Investment Authority (INA), and PT Chandra Asri Pacific Tbk have signed a memorandum of understanding to explore collaboration opportunities in developing a Chlor Alkali - Ethylene Dichloride (CA-EDC) Plant. The project is valued at US$ 800 million or approximately Rp 13.03 trillion (based on an exchange rate of Rp 16,299 per US dollar).

Danantara's Chief Investment Officer, Pandu Sjahrir, stated that this partnership is a strategic step to strengthen the downstream chemical industry. This national strategic project will reduce imports as the chemical sector plays a crucial role in the manufacturing chain and energy transition.

"This investment strengthens national resilience by reducing dependence on imports of essential products such as caustic soda and Ethylene Dichloride," said Pandu in an information disclosure at the Indonesia Stock Exchange on Tuesday, June 17, 2025.

The CA-EDC factory will be managed by PT Chandra Asri Alkali, a subsidiary of the Chandra Asri Group. Currently, the project is in its initial phase, which includes the construction of production facilities with a capacity of 400,000 tons of solid caustic soda per year, equivalent to 827,000 tons in liquid form. Additionally, the plant can produce 500,000 tons of Ethylene Dichloride.

The purpose of this project is to reduce Indonesia's dependence on imports of both materials. The company hopes to promote self-sufficiency in national production and strengthen the downstream industrial process.

President Director of Chandra Asri Group, Erwin Ciputra, stated that the involvement of Danantara Indonesia and INA reflects the investors' confidence in the potential growth of the chemical industry in Indonesia. "Through this collaboration, we are building a strong foundation to drive sustainable industry development and national economic growth," he said.

The second phase of this project will focus on increasing Chlor-Alkali production capacity. Additionally, the company will develop derivative products from chlorine to improve operational efficiency and synergy in the value chain. Currently, a feasibility study is underway to identify and evaluate the potential downstream chlorine-based products that can create greater added value and support domestic industry growth.

The company plans to export Ethylene Dichloride from the factory. Erwin estimated that the foreign exchange earnings could reach Rp 5 trillion per year. The factory is also expected to reduce Indonesia's dependence on caustic soda imports with projected savings of up to Rp 4.9 trillion annually.

Erwin added that the CA-EDC plant will also support the production of various essential raw materials in the country needed by industries such as water treatment, soap and detergent manufacturing, alumina refining, and nickel processing. "By strengthening the local supply chain and expanding export capacity, this initiative also supports sustainable industrialization and enhances Indonesia's competitiveness globally," he said.

Chief Executive Officer of INA, Ridha Wirakusumah, stated that their institution is committed to strengthening the industrial foundation through increased production and reducing the country's dependence on imported raw materials. "Collaborating with Danantara and Chandra Asri Group is in line with our long-term investment mandate to mobilize capital that supports national priorities, strengthens industrial resilience, and contributes to sustainable economic development in Indonesia," he said.

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